It was only a minor change to the design . . . So why did my productivity fall like a stone? . . . . . Worse still - What happened to my profit ?
|Original design . . . .
||Changed to this... slightly bigger and colour changes in the lettering|
The small change you see above is all it took to slash weekly production by 77 units and like a thief in the night, steal over $500.00 in weekly profit from a small home based business running a single head machine.
If you run multi-head machines, rent a shop or factory unit and pay staff then you'll be shocked at how this type of small design change can wreak havoc with production and profits. (Read on to see a full detailed explanation at the bottom of this page)
So, imagine if you could enter just a few details about design changes like the increased stitch count, thread trims and colour changes into an easy-to-use application and instantly see how those changes will affect productivity, your cost for each embroidery, the sell price and weekly profit.
You'd never have to run another job, hoping that it would be OK only to find out when it's too late just how much profit you gave away.
Many embroidery business owners use a price list for embroidery based upon size &/or stitch count?
Well of course this can and does work work but it's a bit like using a shot gun to shoot an apple on a gate post. Some of the pellets hit the target but many of them will miss.
I'm sure that most embroiderers make profit, but some struggle and many don't make as much profit as they should, or could if they had accesas to a quick & accurate costing application.
There's a lot more to the real cost of embroidery than just the design size and/or stitch count
E-PACC is easy to use but is a very thorough production and cost calculator that has been developed over many years. It's real power is that E-PACC does all of the very time consuming calculation for you in the blink-of-an-eye.
||JOB DETAILS SHEET|
This is the part of E-PACC that you and/or your staff would use on a daily basis to check costs and sell prices for new jobs. You simply enter job details in the yellow cells.
A share of the overhead costs for each unit A share of the labour & machine least cost per unit The cost of both top and bottom thread How much backing is used and what the cost will be.
Extra time & cost is added for every
Thread trim Every colour change Every hoop change.
If you use metallic or special thread you simply enter the number of stitches that are embroidered with metallic and what you pay for metallic thread. E-PACC will add on the extra cost of that special thread too.
Extra stitches, thread trims and colour changes kill productivity and profit. Ignore them at your peril
|On the right hand side of the Job details sheet E-PACC calculates
How long it will take to complete each run. How long it will take to complete the whole job How many units of embroidery will be produced each hour and each week
Most important of all E-PACC shows exactly what you need to charge for each piece of embroidery
There's a price for normal service, another higher price for express service and an even a higher price for those rush jobs.
If you run multiple machines in your business E-PACC will also show you the average sell price per unit of embroidery based upon the number of machines you are running.
Once you have entered you business overheads costs here, you can simply set it and forget it.
For a quick start just enter a lump sum for monthly overheads or take some time to enter individual overhead costs.
E-PACC doesn't fudge the numbers to make you think you're doing well if you're not.
Final productivity numbers and costs are not based upon your machine/s running at full speed all the time. We all know that simply doesn't happen - even in the most efficient embroidery shops!
There are thread breaks, bobbin & cone changes and other interruptions to production so E-PACC adds on extra production time for each of the different sizes of machine.
You can even fine-tune the default efficiency rating of each machine in your shop to more accurately reflect your 'real' productivity. Efficient shops with well maintained machines will have a lower rating and consequently higher productivity, lower cost of embroidery and a higher profit.
Tip: Set production targets that are both realistic and achievable within a reasonable time frame and then reward those operators who achieve their new target. It works! We have seen it in action and we've witnessed the growth in both productivity and profits for our customers.
|MACHINES & CONSUMABLES |
This is another 'Set & forget' sheet. Here you enter details such as
The hourly wage cost for each machine operator How many embroidery heads each machine has The maximum stitching speed for the machine Productivity efficiency value What you pay for threads, backing Etc + mtrs per cone and wifth length of backings The time each machine takes to trim threads The average time it takes each machine to change colour The average time it takes an operator to re-load the hoop (per head)
The master sheet displays all of the information that you and your staff see on the Job Details sheet but in addition to that you (and only you) can see important information that you need as a business owner/manager. You see:
cost to produce embroidery on each size of machine the profit that you would expect to make each week for each size of machine the total profit for all machines (based upon this job)
Setting Mark-up (sell prices)
One of the really great features E-PACC offers is the ability to change Mark-ups for each level of service that you provide (Standard - Express & Rush) and then instantly see the result on both sell prices and weekly profit. You can make on-the-spot decisions about whether or not a customers requested price is acceptable to you.
Multi-head machines decrease your costs significantly and allow you to sell at lower prices whilst still making more profit. E-PACC allows you to decide how much (if any) of that cost saving you are prepared to pass on to your customer in order to win more orders and bigger jobs.
When you LOGOUT then E-PACC will return to the Job Details sheet and all sensitive information will be hidden and protected by password. If you forget to Logout E-PACC will re-set itself to protected mode when it is closed and re-started.
E-PACC - Level 1
Prefect for a start-up commercial or home based business with only one embroidery machine.
You simply tell us what size machine you have. You receive a pre configured version of E-PACC
E-PACC - Level 2
For established embroidery businesses that already have up to three different sizes of machines.
You receive E-PACC pre configured for three machine with the same or different numbers of heads.
E-PACC - Level 3
This is the full, user configurable version of E-PACC. Level 3 can be setup with up to 8 embroidery machines of mixed sizes. You can add new machines as your business grows. If you decide to sell a 4 head for example and buy a 8 head you can simply re-configure the 4 head to an 8 and apply the new lease amount for the 8 head. It's quick and very easy.
Why would you take risks with your embroidery business.
EPACC will produce accurate costs, sell prices and profit projections in just a few seconds.
Check the example at the bottom of this page and you'll see that the purchase price of E-PACC is a drop in the ocean compared to how much it will save / make for your business. E-PACC could easily pay for itself on just one job.
The question is not "Can I afford EPACC?" . . . . . . it is "Can I afford to not have EPACC in my business?"
To run EPACC you must currently have Microsoft Excel for Windows installed on your computer.
To see prices or purchase EPACC, please visit our main website Embroidery Source Pty Ltd
See how this small change to an embroidery design caused such an unexpected blow-out in production time and swallowed up a massive chunk of profit?
|A simple change from this logo
||To this logo|
Here's the original embroidery design
Colour 1................ = Block of fill stitch with satin stitch border W = 93mm H = 27mm
Colour 2................ = 7.6mm high capitals BIG BUSTER'S
Colour 3................ = 7.6mm high capitals BAR & BISTRO
Stitch count........... = 7,152 stitches
Thread trims.......... = 6
Colour changes....... = 3
Here are the 'minor' changes that the customer requested
1. Increase the height of the block of fill & border by just 2mm to give a bigger space between the text and the border
2. Remove the connecting stitches between all of the letters in each of the words (thread trim between letters)
3. Make each of the letters on the word BISTRO a different colour
You'd have to agree - that's pretty simple and straightforward. Yes?
The example shown below shows the result of running the new version of the design on a 1 head embroidery embroidery machine in a home based business with very low overheads. You'll se that even this scenario results in a shocking reduction in profit.
This is how the small changes have affected the design
Stitch count increased to .............. 8,047 stitches (an increase of 895 stitches) Thread trims increased to ............. 20 (an increase of 14) Colour changes increased to ......... 9 (an increase of 6)
If you run a 1 head machine you need to charge more than those companies that have large multi-head machines. Why? Simply because your labour cost is much higher.
Let's say that your price list shows a sell price of $6.76 for this design
The small change to the design size and stitch count doesn't elevate the design into a higher price category. . . . . so you simply make the changes with your embroidery program (it takes literally only a minute) and off you go with production.
You might even give yourself a pat on the back for being so quick at modifying the design and for giving your customer such BRILLIANT service.
Now for the bad news!
Here's what happens running a 1 head commercial machine on this edited design for a full week.
Machine cycle time increases by 3.03 minutes per embroidery Weekly production falls by ............. 77 units of embroidery You lose the profit that you would have made on those 77 units Your cost for each completed embroidery increases by $1.00 Your profit for the week drops by over $500.00
What happens for larger multi-head machines?
Here are the numbers for an 8 head machine running the new version of the design and with a sell price of $3.96 per embroidery.
Machine cylcle time would increase by 3.15 minutes Productivity would drop by about 437 units per week Weekly profit would fall by approx $1,600
Set your embroidery prices using real costs - Not guesstimates
E-PACC is a quick and accurate way of maintaining profit margins on every job you run by always applying a fixed markup on the real cost for each design. As you make changes to the stitch count, thread trims, colour changes Etc E-PACC instantly re-calculates production numbers, costs, sell prices for and weekly profit projections in the blink of an eye.